A reluctant “yes”

Purist Slovaks dislike bailing out Greece in principle. But not in practice

THRIFTY countries don't like bailing out feckless ones. And poor countries don't like subsidising rich ones. Slovakia is the second-poorest country in the euro zone (after Estonia), and it generally runs a tight fiscal ship. It held back from last year's rescue of Greece, and is a stickler on conditions for the forthcoming one. Slovakia's GDP per head (at purchasing-power parity) is $23,000, compared with Greece's $27,000. Its debt-to-GDP ratio was a modest 42% in 2010, against 160% in Greece today. Slovakia's export-centred economy has recovered quickly from the financial crisis. After two years of budget deficits at nearly 8% of GDP, the government is cutting spending and raising taxes to the tune of 2.5% of GDP.

Public opinion combines a streak of scepticism about the European Union (seen by some as too socialist) with enthusiasm for the euro (which suits Slovakia's small, open economy). Voters disliked the first Greek bail-out because it seemed unfair. And they liked seeing their government face down self-important big countries.

Yet three of the ruling centre-right parties that opposed the first Greek rescue have now reinvented themselves as champions of euro-zone solidarity. Smer-SD, the leading opposition party, is also backing the government, in an unusual display of bipartisan responsibility. Robert Fico, its leader and a former prime minister, jokes that as “experts on populism” his party has no intention of using the euro crisis for political gain.

Slovakia remains in the hawkish camp, along with Finland, Germany and the Netherlands. It wants more austerity and reform from Greece. The new loan for Athens must be backed by Greek state property as collateral. Slovakia also wants private creditors to share the pain: at least €30 billion ($43 billion), says the finance minister, Ivan Miklos.

Only the free-market SaS (Freedom and Solidarity) party, a member of the ruling coalition, is opposed. It believes the latest bail-out is a swindle on European taxpayers. It dislikes moves towards fiscal union to save the euro. But Iveta Radicova, the prime minister, dismisses such talk as “politicking”.

Senior government figures say privately that they yearn for the EU to fight contagion with “clarity”: distinguishing between insolvent and illiquid countries, with the first restructuring their debts and leaving the euro if necessary. Brave talk, from a country that accounts for barely 1% of euro-zone GDP. Even Estonia and Slovenia, the other two east European minnows, show little sign of following the Slovaks' principled lead.